Minnesota HealthSolutions (MHS) in conjunction with the Mayo Clinic proposes to develop a low-cost, virtual reality system to enhance and increase access to effective therapy for anxiety disorders. Anxiety disorders are one of the most common childhood mental health diagnoses, yet as many as 70% of youth receive little or no treatment. Cognitive Behavioral Therapy (CBT) is well supported by the research as an effective treatment for anxiety disorders. A key component to successful CBT for treating anxiety disorders is the inclusion of fear provoking exposures. Virtual reality exposure therapy (VRET) has demonstrated efficacy and acceptability in the treatment of a number of anxiety disorders, including specific phobias, social anxiety disorder, panic disorder and agoraphobia, post-traumatic stress disorder, and obsessive-compulsive disorder and has been used effectively with children. VR creates an immersive, multimedia experience that is three-dimensional. In the past, the cost of systems has put them out of the price range of most therapists and has made them available only as in-office tool. New low-priced kits offer the possibility of increasing access to therapy. A VRET system, which provides exposures at home with monitoring, will allow providers to offer more frequent treatment than is currently accessible. The monitoring of therapy is a key component to ensuring its success. The proposed system will be used following an initial assessment with a psychologist and could facilitate exposure therapy with less frequent face-to-face follow up visits than traditional psychotherapy. It is hypothesized that more patients with anxiety disorders will receive effective treatment by the development of a low-cost, VR system to provide exposure therapy at home. The phase I program will design, build, and test a prototype VR system.